The purpose of financial markets

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Subject : The purpose of financial markets.
Are financial markets necessary for the wellness of the economy ?

Summary of the topic :

Financial marketsare basically markets for the exchange of capital and credit in the economy. In other words, it is the sale and purchase of stocks, bonds, bills of exchange,commodities, foreign currency...etc between actors of the economy. Financial markets are nowadays really integrated in our minds and in the daily life. Nonetheless ithas not always been the case. That is, and probably also because of past experiences and the recent economical situation, why concerns are rising among people.Owing to strong related and connected financial markets, if a problem occurs (like a bankruptcy in a country) then it can spread really quickly to an othereconomic unit anywhere around the world. So new opportunities and benefits can also transform into threats and worldwide contagion. That is why we can wondering iffinancial markets are necessary for the wellness of the economy ?

How am I going to dress the paper :

I)Why financial markets are necessary to participate atthe dynamism of our economy ?
Who are the actors ?
How do they work ?
What are the relations among them ?
What are they made for ?
Goals – Fonctions –History - Evolution

II)But need to have some regulation
(example of the japanese/american economical crisis : why ?)
Authorities regulation
(SEC inthe US, AMF in France ==> what are their goals, how do they achieve them ?)

That is how they could efficiently contribute to a growing economic growth.
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